As a personal injury lawyer, you have most likely encountered clients who can benefit from compensation but face financial pressures that put their case in jeopardy. They simply cannot afford to file a lawsuit and pursue their claim. Aside from wondering how much settlement funding your client needs, legal funding has advantages to attorneys. For one, it enables you to better serve your clients; here are some more specific factors:
- Clients are more likely to retain an attorney: A client’s financial burden can make or break a case. Your credentials and experience may be appealing, but the plaintiff may simply be unable to afford legal action. Legal funding removes this barrier, increasing the likelihood they’ll retain your services and depend on you until a desirable settlement is reached.
- A client is less likely to settle early due to financial pressure: Months of hard work can come to a grinding halt if the client runs out of money. It’s not uncommon for personal injury cases to last months or even years. You don’t have control over case complexity and the motions of the defendant’s parties. With lawsuit funding, however, you can help manage the client’s financial standing, so they follow through till the end.
- Higher settlements to advertise: Settling for less than the case’s value is counterproductive for the client and your legal service. Law firms often advertise multi-million-dollar settlements that help bring in lucrative business. You may feel highly discouraged if a client settles too early because they can’t afford the legal process.
- Your client is more likely to praise and refer you: The client-attorney relationship is built on trust. Most people who file lawsuits are looking to depend on someone willing to help any way they can. Therefore, the more assistance you provide, the more satisfaction you may see from a client who’s been through much hardship. Cash advances can also lead to more business if the plaintiff’s settlement meets their needs and they later refer your law firm.
- You don’t have to worry about being paid back: Third-party legal funding doesn’t come directly from your finances. The payback process only matters if there’s a settlement, so you can pick cases with the best chances of winning. The party funding the plaintiff bears the risk. Interest rates are determined on a case-by-case basis and there are no hidden fees on the part of the plaintiff or the attorney.
By offering a lawsuit cash advance, you have time to negotiate higher settlements. Insurance companies, large businesses, and government entities can be difficult to negotiate with. The process can therefore take time and with, legal funding for attorneys, time is on your side. Plus, it is not a lawsuit loan so the plaintiff doesn’t have to worry about collateral or credit reviews. The funding received is based solely on the merit of the plaintiff’s case.
As an attorney, lawsuit funding can provide you with peace of mind. Not only for your sake but also the well-being and happiness of your clients.